Online travel agency Expedia (NASDAQ: EXPE) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
Expedia beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $3.18 billion, up 10.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ number of room nights booked estimates. It reported 86.4 million nights booked, up 11.6% year on year.
Is Expedia a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Expedia’s revenue to grow 4.3% year on year to $3.01 billion, slowing from the 8.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Expedia has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Expedia’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Booking delivered year-on-year revenue growth of 7.9%, beating analysts’ expectations by 3.6%, and Airbnb reported revenues up 6.1%, topping estimates by 0.6%. Booking traded up 3.4% following the results while Airbnb’s stock price was unchanged.
Read our full analysis of Booking’s results here and Airbnb’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 20.6% on average over the last month. Expedia is up 20.6% during the same time and is heading into earnings with an average analyst price target of $199.33 (compared to the current share price of $164.73).
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